Several major U.S. financial institutions, with a collective asset management value of at least $27 trillion, are actively seeking to offer their clients exposure to Bitcoin and other cryptocurrencies.
CoinShares Chief Strategy Officer (CSO) Meltem Demirorsas highlighted that the notable players in this space include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America.
Demirors emphasized that many of the largest financial institutions in the United States are actively working towards granting access to Bitcoin and other cryptocurrencies. Collectively, these institutions manage an astonishing $27 trillion in assets.
BlackRock’s recent submission of a Bitcoin exchange-traded fund (ETF) application on June 16 sparked a surge in the number of filings for comparable products. This trend has fueled a growing belief that the emergence of institutional investors in the Bitcoin market is imminent.
After BlackRock filed for a Bitcoin exchange-traded fund (ETF), it sparked a significant positive sentiment across the cryptocurrency market. As a result, the price of Bitcoin experienced a remarkable rally of 5,000 points in just seven trading days. According to TradingView data, Bitcoin reached its highest price of the year at $31,479 on June 23.
Also Read: Bitcoin Holds Strong at $30K Amid Bullish Momentum
Demirors, on the other hand, pointed out that despite the expectation of institutional involvement, it is more of a gradual process rather than a sudden surge. She emphasized that we are currently witnessing the construction of connections between traditional financial institutions and the crypto space in real time.
Furthermore, it is important to highlight that the estimated $27 trillion figure represents the total assets under management of the eight institutions mentioned, and only a small fraction of this amount is likely to be allocated to crypto investments.
However, it is worth noting that Will Clemente, co-founder of Reflexivity Research, shared a similar viewpoint to Demirors. He highlighted that Bitcoin’s current market capitalization is still under $600 billion.
In his analysis, Clemente emphasized that “Between HSBC, Blackrock, Fidelity, and Schwab we are talking about $25 trillion in assets under management that will soon be enabled to buy Bitcoin.”
As for the increasing interest from institutional investors, we can observe this trend in the ProShares Bitcoin Strategy ETF (BITO), which recently experienced its largest weekly inflow in a year. This surge in investors’ interest has propelled the fund’s asset under management (AUM) to surpass the $1 billion milestone.
